Is the Housing Market Offering More Choices Where You Are?
One of the most encouraging trends in today’s real estate market is the increase in the number of homes available for sale. Recent insights from Realtor.com reveal that, nationwide, the number of homes listed for sale has surged by 36.6% compared to this time last year. This is a significant boost, providing you with far more choices than you would have had just a year ago. With this rise in inventory, buyers are also regaining some negotiating power. If you’ve been hesitant to enter the market due to the tight inventory in recent years, this development should be a welcome change. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), puts it this way: “Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.” However, it’s important to keep in mind that even with this improvement, the market hasn’t flipped to an oversupply of homes. We’re still far from having enough homes for sale to drive prices down significantly. When comparing today’s inventory to the more typical pre-pandemic levels (2017–2019), there are still about 29% fewer homes available (see graph below). So, while we’re seeing a nearly 37% year-over-year increase, we haven’t fully returned to the inventory levels of a normal market. Bill McBride, a Housing Analyst for Calculated Risk, notes: “ . . . currently, inventory is increasing year-over-year but is still well below pre-pandemic levels.” This situation is expected as it will take time for the market to fully recover to typical inventory levels. The silver lining for buyers is that in some regions, inventory is getting closer to what we’d expect in a balanced market. Here’s a snapshot of how inventory growth is unfolding across different regions (see graph below): Real estate markets are highly localized, so to get a clear picture of what’s happening in your area, it’s best to consult a local real estate agent. They can provide insights into the inventory trends where you live and how they compare to national patterns. You might discover even more opportunities to find the right home in your area. Bottom LineThe national housing supply is on the rise, offering buyers more options. This could be your chance to find a home that fits your needs. What are you looking for in a home? And what’s your budget? Let’s explore the options together to find the best fit for you.
Where Will You Go After You Sell Your Home?
Selling your home can be an exciting adventure, but it often raises the big question: Where will you go next? For many homeowners looking to sell and move, the prospect of finding the right new home might seem daunting due to the well-known shortage of available options. However, the landscape is shifting. This year, many markets have seen an increase in the number of homes for sale, and that includes both existing homes and newly constructed ones. So, which path should you take? Should you invest in a charming existing home, or go for a shiny, brand-new one? The decision is yours, and it hinges on what matters most to you in your next home. Benefits of Buying a Newly Built Home If you're considering purchasing a newly built home, here are some compelling advantages to keep in mind: Brand New Everything: Enjoy the luxury of being the first to use brand-new appliances, materials, and finishes in your home. Energy Efficiency: New homes often come with modern, energy-efficient options that can help you save on utility bills while reducing your carbon footprint. Minimal Repairs: With everything being new, you’ll face fewer maintenance issues and enjoy peace of mind with builder warranties. Builder Incentives: Builders are currently eager to sell their existing inventory and are often willing to offer concessions and negotiate deals to make sales happen. This can make buying a new home more affordable. Interestingly, the trend towards building smaller, more affordable homes means that the median price of newly built homes is often lower than that of existing homes. Ralph McLaughlin, Senior Economist at Realtor.com, notes: "Homebuyers who are looking for that 'new-home smell' may find a friendlier market now, as new homes are often more competitively priced compared to existing ones." Curious about what new homes are available in your area? Your real estate agent can provide valuable insights into local builders, new communities, and the ins and outs of builder contracts. Advantages of Purchasing an Existing Home On the flip side, there are many appealing reasons to consider an existing home: Established Neighborhoods: Buying an existing home often means moving into a well-established neighborhood, giving you a sense of community and familiarity before you even settle in. Variety of Styles: Existing homes offer a wide array of architectural styles and floor plans, allowing you to find something truly unique and suited to your taste. Lived-in Charm: Older homes come with character and charm that newer homes might lack, from intricate woodwork to vintage fixtures. Mature Landscaping: Many existing homes boast mature trees and landscaping that offer privacy and curb appeal, something that can take years to cultivate in a new home. Beyond these lifestyle benefits, existing homes offer strategic advantages. You can always update and personalize an older home with modern features, merging the charm of the past with contemporary trends. Such upgrades not only enhance your living experience but can also increase the resale value of your home. As an article from LendingTree highlights: “. . . they can personalize it and possibly increase its potential resale value with cosmetic upgrades . . . Plus, if a home comes with physical details or stories that add charm, in some cases, these elements are attractive enough to add to a home’s resale value . . .” If you're interested in exploring existing homes, your real estate agent is your best ally, providing access to a comprehensive list of available homes that meet your criteria. Conclusion Deciding whether to buy an existing home or a newly built one after selling your current property involves careful consideration of various factors. Understanding the unique opportunities each option presents is crucial in today's market. Let’s connect so you have expert guidance to explore the available choices in our area, helping you find the perfect place to call home.
The Top Two Benefits of Choosing a Newly Built Home
When you’re planning a move, it’s normal to wonder where you’ll end up and what your future home is going to look like. Maybe you’ve got a specific picture of that house in your mind. But unless you came into this process knowing you want to buy a newly built home, you may not have pictured new home construction. A trusted real estate agent can help walk you through these two reasons you may want to reconsider that. 1. Including Newly Built Homes Could Expand Your Choices There are two main types of homes available on the market: new and existing. A newly built home refers to a house that has just been constructed or is still in the process of being built. An existing home is one that a previous homeowner has already lived in. Currently, the inventory of existing homes is tight, but there may be more options for you among newly constructed homes. According to data from the Census Bureau and the National Association of Realtors (NAR), newly built homes now represent a larger portion of today's housing inventory than usual: Between 1983 and 2019 (considered the last normal year in the market), newly built homes accounted for only 13% of the total homes for sale. But today, that figure has climbed to over 33%. After more than a decade of underbuilding, builders today are not overextending. Even with the increase in new construction, there remains a significant housing shortage. However, for you, the rise in new builds can be transformative, providing you with more options in your search. 2. Newly Built Homes May Be More Affordable Than Expected You might still be asking if a new build is genuinely within your reach. If you’ve previously dismissed them, thinking they would exceed your budget, it might be time to reassess. The price gap between newly built homes and existing houses is narrowing. Here's why. Builders focus on what’s in demand, and they understand that people need more options now, especially smaller and potentially more affordable ones. That's why they’re constructing smaller homes at lower price points. The gap between the prices of new and existing homes is shrinking as a result: As LendingTree notes: “In the past, newly built homes have been much more expensive than existing homes — but that gap has been getting smaller recently. In some places today, you may find that the cost to build versus buy is roughly the same.” Similarly, CNBC reports: “While new builds are still sold for slightly more than existing homes, the price gap has significantly narrowed . . .” Additionally, some builders are offering incentives such as price cuts and mortgage rate buy-downs to sweeten the deal. Today, there are plenty of reasons why new builds may be worth considering. Other buyers certainly seem to think so. As Freddie Mac states: “As the supply of existing homes for sale remains low and home prices continue to rise, more buyers are choosing to purchase new homes than in previous years.” However, it's essential to understand that buying a newly built home isn't the same as buying an existing one. Builder contracts have unique clauses and considerations. Therefore, partnering with a local agent who understands the market, builder reputations, and contract specifics can ensure you have an expert by your side to help you explore this option. Bottom Line If you're curious about what builders are doing in our area, let’s connect and explore the options together. And if you're open to casting a wider net to expand your choices even more, we can discuss broadening your search to include nearby towns.
Categories
Recent Posts
